If you're looking for a comprehensive guide to Nationwide's 457(b) Plan, you've come to the right place.
In this post, we'll provide an overview of the plan, including reviews from participants and experts, as well as details on fees and ratings. We'll also outline the key benefits of the 457(b) Plan so you can decide if it's the right investment option for you.
Nationwide 457(b) Plan - Reviews, Benefits, Fees & Ratings Table of Contents
What is a Nationwide 457(b) Plan?
A Nationwide 457(b) Plan is a retirement savings plan that is sponsored by an employer. Employees can contribute to the plan on a pretax basis, which reduces their taxable income. The funds in the account grow tax-deferred, and employees can take distributions from the account after they reach age 59½.
How Does a Nationwide 457(b) Plan Work?
A Nationwide 457(b) Plan works by employees contributing a portion of their salary into the account. The employer may also make contributions on the employee's behalf. The funds in the account grow tax-deferred, and can be used for qualified expenses in retirement.
What Are The Key Features of a Nationwide 457(b) Plan?
There are a few key features of the Nationwide 457(b) Plan that make it an attractive option for retirement savings.
First, there is no age limit on contributions - meaning you can keep contributing to your account even after you've reached retirement age.
Additionally, the plan offers a wide range of investment options, including both traditional and non-traditional assets. This gives you the flexibility to tailor your portfolio to your specific goals and risk tolerance.
Finally, the Nationwide 457(b) Plan has a relatively low fee structure when compared to other retirement savings options. This can help you keep more of your hard-earned money in your account and working for you.
What Commissions and Management Fees Does a Nationwide 457(b) Plan Come With?
The Nationwide 457(b) Plan comes with a number of different fees that you should be aware of before investing. These include an annual maintenance fee, account opening and closing fees, as well as commissions and management fees.
The good news is that the vast majority of these fees are either waived or discounted if you invest through a financial advisor. For example, the annual maintenance fee is waived if you have an account balance of $25,000 or more. And the account opening and closing fees are usually discounted or waived altogether if you invest through a financial advisor.
The only fee that you can’t avoid is the commissions and management fees charged by the fund managers. These fees can vary widely, so it’s important to compare them before investing.
Overall, the fees charged by a Nationwide 457(b) Plan are relatively low compared to other retirement savings plans. And if you invest through a financial advisor, you can often avoid most of the fees altogether.
What Are The Advantages of a Nationwide 457(b) Plan?
One of the key advantages of a Nationwide 457(b) Plan is that it allows employees to save for retirement on a tax-deferred basis. This means that any contributions made to the plan are not subject to federal income taxes.
In addition, any earnings on the investments within the plan are also not subject to federal income taxes until they are withdrawn.
Another key advantage of a Nationwide 457(b) Plan is that it offers employees the ability to make catch-up contributions. This means that employees who are 50 years of age or older can contribute an additional $6000 per year to their plan. This can be a great way to help employees save even more for retirement.
Finally, a Nationwide 457(b) Plan offers employees the ability to take out loans against their account. This can be a great way to access funds in an emergency without having to pay taxes on the withdrawal.
What Are The Disadvantages of a Nationwide 457(b) Plan?
The main disadvantage of a Nationwide 457(b) Plan is the fees. The fees can be high, and they can eat into your investment returns. Another disadvantage is that you may not be able to access your money as early as you would with other retirement plans.
If you're considering a Nationwide 457(b) Plan, make sure you understand the fees and the restrictions on withdrawals. Talk to a financial advisor to see if this plan is right for you.
What Are Some Alternatives to a Nationwide 457(b) Plan?
There are a few alternatives to a Nationwide 457(b) Plan.
One option is to roll over your account balance into a traditional IRA. Another option is to take a lump sum distribution.
And finally, you could leave your account balance in the plan if you're still employed by your company. Each option has its own set of pros and cons that you'll need to consider before making a decision.
How Do You Open a Nationwide 457(b) Plan?
The first step is to contact Nationwide directly and request an application. They will likely ask you some questions about your finances and investment goals. Once you've submitted the application, a representative will reach out to you to discuss account options and fees.
To open a Nationwide 457(b) Plan, you'll need to:
- Contact Nationwide directly and request an application
- Submit the application, which will include questions about your finances and investment goals
- A representative will reach out to you to discuss account options and fees
The whole process should take about a week from start to finish. Once your account is open, you can begin contributing money to it.
What is The Minimum Amount Required to Open a Nationwide 457(b) Plan?
To open a Nationwide 457(b) Plan, you'll need to contribute at least $50. However, there is no maximum contribution limit, so you can contribute as much as you'd like.
What Are The Nationwide 457(b) Plan Contribution Limits?
The contribution limit for the Nationwide 457(b) Plan is $18,500 per year. This limit may change in future years, so it's important to check with the plan administrator to see if the limit has changed.
What Are The Eligibility Requirements for a Nationwide 457(b) Plan?
To be eligible for a Nationwide 457(b) Plan, you must:
- Be employed by a state or local government entity, or certain tax-exempt organizations
- Be age 21 or older
- Have completed at least one year of service with your employer (if applying for the catch-up provision)
- Not have reached your normal retirement age
Do You Pay Taxes On a Nationwide 457(b) Plan?
You may be wondering if you have to pay taxes on your earnings from a Nationwide 457 plan. The answer is no, you do not have to pay taxes on the money you contribute to your account or on the earnings from your investments. However, you will have to pay taxes when you withdraw money from your account.
When Can You Withdraw Money From a Nationwide 457(b) Plan?
The most common question I get about the Nationwide 457(b) Plan is "when can I withdraw money from it?" The answer to that question depends on a few factors, but the most important one is whether or not you are still employed by the company that sponsors your plan.
f you are still employed, you will typically have to wait until you reach retirement age before you can begin withdrawing money from your account.
There are a few exceptions to this rule, however. If you become disabled, you may be able to withdraw money from your account early. Additionally, if you die, your beneficiaries will be able to receive the funds that are in your account.
How Does a Nationwide 457(b) Plan Compare to a 401K?
As we all know, a 401k is the most common retirement savings plan offered by employers in the United States. But what about a 457 plan? How does it compare to a 401k?
The biggest difference between a 401k and a 457 plan is that with a 457 plan, you can contribute after-tax dollars. This means that you can contribute more money to a 457 plan than you can to a 401k.
Another difference is that with a 457 plan, you can withdraw your money before you retire. With a 401k, you have to wait until you're 59 ½ years old to start withdrawing your money.
Finally, the fees associated with a 457 plan are typically lower than the fees associated with a 401k. This is because 457 plans are sponsored by state and local governments, while 401ks are sponsored by employers.
What Assets Are Available With a Nationwide 457(b) Plan?
A Nationwide 457(b) Plan offers a wide variety of assets to choose from. You can invest in stocks, bonds, mutual funds, and even annuities. With so many options available, you can tailor your portfolio to meet your specific goals and needs.
Why Do People Use a Nationwide 457(b) Plan?
There are many reasons why people use a Nationwide 457(b) Plan. Some people use it to save for retirement, while others use it to save for a child's education. There are also some people who use a Nationwide 457(b) Plan to save for a down payment on a home. Whatever the reason, there are many benefits to using a Nationwide 457(b) Plan.
Does a Nationwide 457(b) Plan Accept Rollovers?
A 457 plan can accept rollovers from other eligible retirement plans, including 401(k)s, 403(b)s, and traditional IRAs. However, there are some restrictions on when and how much you can roll over. For example, you may not be able to roll over your entire account balance if you're still employed by the same employer.
If you're considering rolling over your retirement savings to a Nationwide 457 plan, talk to a financial advisor to see if it's the right move for you. There may be better options available, depending on your specific situation.
How Long Does It Take to Transfer to a Nationwide 457(b) Plan?
If you're thinking about transferring to a Nationwide 457(b) Plan, the process is actually pretty simple. You can do it online in just a few minutes. However, keep in mind that there may be some fees associated with the transfer. Overall, though, the process is relatively quick and easy.
How Do You Put Money Into a Nationwide 457(b) Plan?
The process is pretty simple. You just contact your employer and let them know you want to contribute to a 457 plan. They'll set up the deduction from your paycheck, and the money will go into your account on a regular basis.
There are a few things to keep in mind when you're contributing to a 457 plan. First, you'll want to make sure that you're not exceeding the contribution limit for the year. The IRS sets a limit on how much you can contribute to all retirement accounts each year, and if you go over that limit, you'll be subject to taxes and penalties.
Second, you'll want to consider your investment options carefully. With a 457 plan, you have the option of investing in a wide variety of assets, including stocks, bonds, and mutual funds. You'll want to choose investments that are appropriate for your risk tolerance and your financial goals.
Finally, you'll want to keep an eye on the fees associated with your 457 plan. Some plans charge annual fees, while others charge fees for each transaction. Make sure you understand the fees before you invest, so that you can keep your costs low.
Can You Open a Nationwide 457(b) Plan For a Child?
The simple answer is no, however there are a few workaround options. One option would be to gift money to the child’s grandparent, who could then open up a account for the grandchild.
Another option would be for the parent to open up a 529 college savings plan – which can be used for K-12 education expenses as well as college.